ANNUAL PERFORMER REVIEW RAISING THE VOLUME
Transcript of ANNUAL PERFORMER REVIEW RAISING THE VOLUME
WELCOME TO THE 2O12/2O13 PERFORMER REVIEW.
In a rapidly evolving world, PPL is committed to managing your rights, maximising their value and distributing the income that we collect for you in the most timely and cost-efficient manner possible.
Despite the economic challenges of the last twelve months, PPL has continued to grow its investment in IT systems, staff training and development. At the same time our marketing to and education of businesses playing recorded music has increased greatly. This, combined with the development of a range of business processes at PPL, has helped to make our licensing more comprehensive and efficient than ever before.
This work has a direct impact on our revenue collections which increased significantly in 2O12 and, accordingly, increases the revenues that we pay to you, our members.
This review tells the story of the year through a range of top-line statistics and we trust it outlines our commitment to you and the lengths to which we go to serve you…
In summary, all that we do, we do because it’s yours.
CONTENTS1 RAISING THE VOLUME2 CEO AND PERFORMER BOARD CHAIRMAN’S STATEMENTS4 YOUR REVENUE 5 YOUR REVENUE STREAMS6 YOUR PLAYED RECORDINGS
7 OUR SYSTEMS8 YOUR MEMBERSHIP SERVICES9 YOUR UK PAYMENTS1O YOUR INTERNATIONAL PAYMENTS12 YOUR THANKS13 CONTACT US
1
RAISING THE VOLUME2O12 FINANCIAL HIGHLIGHTS
6.2 MILLIONSOUND RECORDINGS
IN OUR DATABASE
3.6 BILLIONSECONDS OF UK TV AND RADIO BROADCASTING
AIRPLAY
75,OOO+MEMBERS
1OO+OVERALL TARIFFS
3OO,OOO+LICENSED PUBLIC
PERFORMANCE SITES,BROADCAST AND
ONLINE CHANNELS
67INTERNATIONAL
RECIPROCAL DEALS
£147 MILLIONDISTRIBUTABLE REVENUE
TO MEMBERS
DEAR PERFORMER MEMBERS
I am delighted that, in 2O12, we grew our three revenue streams, resulting in an 11% increase in licence fee revenue and a 12% rise in the amount distributable to members. This good progress continues in 2O13.
This growth was despite difficult economic conditions in the UK and around the world. It also contrasted with the position for our counterparts in other countries, which made growing our International collections particularly challenging.
We have also continued our efforts to provide excellent customer service to licensees and members. This work has been supported by PPL’s launch (as part of a wider initiative by UK licensing bodies) of Codes of Conduct for licensees and members. I am also very proud that we reached the finals for two different customer service awards in 2O12 and have done so again in 2O13.
On the licensing side, we invested greater resources in seeking to ensure that all businesses are aware of the requirement (in almost all cases) for a PPL licence if they are playing commercial recordings in public. Our local media and marketing campaigns, together with raised presence around the country, have increased awareness of PPL considerably.
We extended our working relationship with PRS for Music in 2O12 and have continued that into 2O13. Collective licensing already simplifies copyright licensing considerably but both companies are keen to explore where we can work together for the benefit of members and licensees. PPL and PRS for Music already operate several joint licensing solutions and are working on two further joint licences for small workplaces and amateur sports clubs.
We have also been working hard on the services that we provide to you, our members, in order to make your engagement and relationship with us as effective as possible. Having seen the enormous benefits of recent IT systems investment, ongoing work in that area remains a key priority, as we have significant plans to develop our services to you even further. Coupled with maximising your PPL revenues, these developments remain central to our company strategy.
The revenue growth and service improvements delivered in 2O12 (and prior years) were achieved with a board of directors from across the music industry, all working on behalf of all PPL’s members. That board structure has evolved considerably over the years, particularly with the creation of the Performer Board in 2OO6. As the next step in this important journey, this November will see the election onto both the PPL Board and Performer Board of a third Elected Performer Director, bringing the total number of PPL Performer Directors to five.
My thanks go to both boards and their various committees for their continued insight, support and governance. Above all, I would like to thank the PPL staff, whose hard work and dedication are very much appreciated.
Peter Leathem PPL
CEO’S STATEMENT
‘Having seen the enormous
benefits of recent IT systems investment,
ongoing work in that area remains
a key priority.’
+11% ANNUAL LICENCE FEE REVENUE INCREASE
DEAR PERFORMER MEMBERS
As usual, it is my pleasure and privilege to present this year’s Annual Performer Review and once again be able to report a healthy increase in PPL revenues for 2O12 in regard to both collection and distribution. It has been a challenging year but, through prudent and imaginative policies, a record £147million was available to members for distribution.
This is a very significant year, in that, following many healthy discussions, it has been agreed that the constitution of the PPL main board will change to allow a further elected Featured Performer Director to sit on the Board and who will be announced at the Annual Performer meeting. In addition, PPL will reduce the number of its board director positions by two and, following Universal’s purchase of EMI, this will reduce the major record companies’ representation from four to three. We have worked towards this over the years and are now in a good position to represent even better the music industry as it evolves in the twenty-first century.
We never forget as we serve you that our remit is to manage the sound recording rights entrusted to us by you, maximise their earnings from the broadcast and public use of those recordings, and distribute the revenue in the most efficient manner possible.
Over the year, in particular, we have worked closely with overseas music licensing companies (OMLCs) to provide the correct data and to ensure timely payments, concentrated on public performance revenues (which grew by 18%) and looked to reduce held monies. In regard to OMLCs, we have become an example of best practice with a high reputation and PPL’s international revenue totals more than all the other societies combined.
We always look at new legislation, member suggestions and technical means of increasing collection and methods of identifying correct performer line-ups and all ideas are carefully debated. We do not take knee-jerk action to issues as ideas need to be analysed because what may work for some members may not for others. However, your views are important and encouraged. We have increased the number of Member Open Days at PPL and attended more events around the country as part of our outreach programme than we ever have before. We hope that you will take full advantage of these events.
We are optimistic regarding the future and I finish by thanking all the staff at PPL who go to great lengths in doing a superb job and who often have to tackle potentially difficult and unreasonable clients who are reluctant to pay a penny for the use of your music ‘product’.
Gerald Newson PPL Performer Board
14.4%COST-TO-INCOME RATIO
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PERFORMER BOARDCHAIRMAN’S STATEMENT
‘We… are now in
a good position to represent even better the music
industry as it evolves in the twenty-first
century.’
YOUR REVENUE
PLAYING RECORDED MUSIC IN PUBLIC OR IN TV AND RADIO BROADCASTS WILL ALMOST CERTAINLY LEGALLY REQUIRE A PPL LICENCE. THE MONEY THAT BUSINESSES AND BROADCASTERS PAY GIVES RECORD COMPANIES, OTHER RIGHTSHOLDERS AND YOU, THE PERFORMERS, THE INCOME YOU DESERVE.
HOWRECORDED
MUSICPERFORMANCE
RIGHTSCOLLECTION
WORKSLEGALTHE LAW GIVES YOU, OUR PERFORMER MEMBERS, AND RECORD COMPANIES THE RIGHT TO BE PAID WHEN YOUR RECORDED MUSIC IS PLAYED IN PUBLIC AND/OR BROADCAST.
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USEBUSINESSES AND BROADCASTERS PROVIDE PPL WITH INFORMATION ABOUT THE RECORDED MUSIC THEY USE.
2
COLLECTIONWE COLLECT FEES ON BEHALF OF YOU, OUR PERFORMER MEMBERS, AND RECORD COMPANIES AND IN RETURN GIVE THOSE BUSINESSES AND BROADCASTERS THE LICENCE THEY LEGALLY REQUIRE.
3
SYSTEMSMUSIC MATCHING IS COMPLETED THROUGH A COMBINATION OF PROCESSES INCLUDING CUSTOMER RETURNS AND BROADCAST DATA.
4
PAYMENTSYOU RECEIVE YOUR PAYMENTS FOR THE USE OF YOUR RECORDED MUSIC. BUSINESSES PLAY, BUSINESSES PAY – IT’S A FAIR DEAL ALL ROUND.
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YOUR REVENUE STREAMS
9O%TOTAL VALUE OF
GLOBAL PERFORMANCE RIGHTS MARKET
FROM WHICH PPL COLLECTS
67 AGREEMENTS PPL
HAS IN PLACE AROUND THE WORLD
£36.6MILLION
21% OF TOTAL REVENUE
13STAFF IN PPL
INTERNATIONAL TEAM
9.4%GLOBAL GROWTH OF
PERFORMANCE RIGHTS(SOURCE IFPI)
13LANGUAGES
SPOKEN IN PPL INTERNATIONAL
TEAM
74%OF OVERALL VALUE OF PERFORMANCE RIGHTS INCOME COMES FROM
TOP TEN MARKETS GLOBALLY
INTERNATIONAL
23O+
HOSPITAL RADIO STATIONS LICENSED
BY PPL
5,OOO+
ONLINE RADIO CHANNELS LICENSED THROUGH LIVE 365
£69.4MILLION
41% OF TOTAL REVENUE
3OO+
COMMERCIAL RADIO STATIONS AND
6O+
BBC RADIO STATIONS LICENSED BY PPL
29TV CHANNELS
MONITORED BY FINGERPRINT TECHNOLOGY
BROADCASTAND ONLINE
3OO+
TV CHANNELS WITH A
PPL LICENCE
1O5,572 RECORDINGS
RECEIVING REVENUE FROM TV
91% OF BUSINESSES
SAY THAT PLAYING MUSIC MAKES STAFF
AND CUSTOMERS HAPPIER*
65O PRO-ACTIVE CALLS
INTO PPL EACH MONTH TO REQUEST
A LICENCE
69 PUBLIC
PERFORMANCETARIFFS
£64.8MILLION
38% OF TOTAL REVENUE
PUBLICPERFORMANCE
2,754 AVERAGE
NUMBER OF CALLS RECEIVED DAILY
8O% OF BOSSES SAY
THAT MUSIC IMPROVES STAFF MORALE*
5 JOINT LICENSING SOLUTIONS WITH PRS FOR MUSIC
PPL HAS THREE MAIN REVENUE STREAMS – BROADCAST AND ONLINE, PUBLIC PERFORMANCE AND INTERNATIONAL. THESE ARE VERY DIFFERENT AREAS AND REQUIRE SPECIALISED TEAMS TO DEAL WITH A WIDE ARRAY OF COMPANIES AND ORGANISATIONS.
4|5*SOURCE: MUSICWORKS RESEARCH 2O13
3.6 BILLIONSECONDS OF UK TV AND RADIO BROADCASTING AIRPLAY
USED TO MAKE THE JUNE 2O13 DISTRIBUTION
868,OOOUNIQUE RECORDINGS RECOGNISED
BY PPL AS HAVING RECEIVED INTERNATIONAL AIRPLAY
21.4 MILLIONSECONDS OF AIRPLAY REPORTED ON AVERAGE
BY EACH COMMERCIAL STATION IN THE UKLICENSED BY PPL IN 2O12
YOUR PLAYED RECORDINGS
THE RAPIDLY GROWING NUMBER OF SOUND RECORDINGS, TOGETHER WITH THE WIDER USE OF THOSE RECORDINGS ON DIFFERENT PLATFORMS AND IN MORE COUNTRIES, MEANS THAT A HUGE VOLUME OF INFORMATION IS PROCESSED BY PPL’S SYSTEMS IN ORDER TO DISTRIBUTE YOUR REVENUE TO YOU.
OUR SYSTEMS
445 MILLIONROWS OF DATA GENERATED TO MAKE
THE JUNE 2O13 DISTRIBUTION
8 TERABYTESOF DATA ACROSS OUR REPERTOIRE AND DISTRIBUTION SYSTEMS
(THAT’S 8 TRILLION BYTES AND THE EQUIVALENT OF 12,5OO CDS OF DATA)
2.7 BILLIONROWS OF DATA LOADED INTO DATA WAREHOUSE
TO ALLOW THE PRODUCTION OF OUR NEW FORMAT MEMBER STATEMENTS
IT IS CRITICAL THAT OUR DISTRIBUTIONS ARE TIMELY AND ACCURATE, HOWEVER MUCH THE NUMBER OF RECORDINGS GROWS AND THEIR USE MULTIPLIES. THIS CAN ONLY HAPPEN WITH ROBUST SYSTEMS THAT, BY DEFINITION, NEED TO BE POWERFUL AND SOPHISTICATED, GIVEN THE HUGE AMOUNT OF DATA TO BE HANDLED.
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435,557ACCEPTED CLAIMS FROM PERFORMERSTO BE LINKED TO A RECORDING IN THEPPL REPERTOIRE DATABASE BETWEEN
JUNE 2O12 AND JUNE 2O13 VIA MYPPL
6O3,315UPDATES MADE FROM JULY 2O12 TO JUNE 2O13
BY REPERTOIRE DATA QUALITY TEAM TOPERFORMER LINE-UP INFORMATION
ON PPL RECORDINGS
YOUR MEMBERSHIP SERVICES
WE ENDEAVOUR TO DELIVER A FIRST-CLASS SERVICE AND IT IS IMPORTANT THAT WE ADAPT TO YOUR NEEDS IN A FAST-MOVING, GLOBAL ENVIRONMENT AND ONE THAT IS GROWING CONSTANTLY.
9PPL MEMBER OPEN DAYS
HELD IN THE LASTTWELVE MONTHS
145,766UNIQUE VISITORS TO MEMBERPAGES ON WEBSITE IN FIRST
TEN MONTHS OF 2O13
2,778NEW PERFORMERS DIRECTLY
REGISTERED WITH PPL IN FIRSTTEN MONTHS OF 2O13
9O%OF WHOM SIGNED UP TO
PPL’S INTERNATIONALCOLLECTIONS SERVICE
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PPL’S DISTRIBUTION OF REVENUES TO MEMBERS IN JUNE 2O13 WAS THE LARGEST IN THE COMPANY’S HISTORY – INCLUDING MORE MONEY, FOR MORE PERFORMERS, FOR MORE USES OF YOUR MUSIC.
YOUR UK PAYMENTS
+15.8%INCREASE IN NUMBER OF PERFORMERS WHO
RECEIVED A PAYMENT OVER £5 IN JUNE 2O13
DISTRIBUTION
+14%INCREASE IN NUMBER
OF RECORDINGS WHICH RECEIVED A PAYABLE
ALLOCATION IN JUNE 2O13
11TIMES EACH YEAR
PPL MAKES PAYMENTS TO PERFORMERS
29,697PERFORMERS PAID IN PPL’S
MAIN DISTRIBUTION IN JUNE 2O13,OF WHICH 1O,262 WERE PERFORMERS
REGISTERED VIA AN OVERSEAS MUSIC LICENSING COMPANY
3,346PERFORMERS WHO RECEIVED THEIR FIRST
EVER PAYMENT FROM PPL IN 2O13
£1.65 MILLIONRELEASED TO PREVIOUSLY UNREGISTERED PERFORMERS
LOCATED AND REGISTERED IN 2O13
THE NUMBER OF COUNTRIES WHERE WE HAVE CONTRACTS AND THE AMOUNT OF OUR INTERNATIONAL COLLECTIONS CONTINUE TO GROW AS PERFORMANCE RIGHTS LAST YEAR BECAME THE FASTEST GROWING REVENUE STREAM* WITHIN THE RECORDED MUSIC SECTOR. WE CONTINUE TO WORK CLOSELY WITH INTERNATIONAL COLLEAGUES TO ENSURE THE HIGHEST POSSIBLE STANDARDS OF DATA, REPORTING AND MATCHING.
YOUR INTERNATIONAL PAYMENTS
£36.6 MILLIONAMOUNT OF INTERNATIONAL REVENUE COLLECTED
ON BEHALF OF PPL MEMBERS (AS REPORTED IN 2O12 ANNUAL REVIEW)
3,865,139NUMBER OF INDIVIDUAL PERFORMANCES
CLAIMED ON BEHALF OF PPL PERFORMER MEMBERS
959,344NUMBER OF RECORDINGS PLAYED
INTERNATIONALLY WHERE PPL CLAIMED PERFORMER REVENUES
*SOURCE: IFPI
PPL’S INTERNATIONAL DEPARTMENT WAS ESTABLISHED IN 2OO2 AND HAS GROWN SIGNIFICANTLY. IT OFFERS A SIMPLE ONE-STOP SHOP FOR PERFORMANCE RIGHTS COLLECTION AROUND THE WORLD. BY THE END OF 2O12, THE COMPANY’S TOTAL INTERNATIONAL REVENUES FOR MEMBERS HAD REACHED £161 MILLION. THIS REFLECTS OUR COMMITMENT TO THE USAGE OF PPL SOUND RECORDINGS GLOBALLY.
1O|11
4,492PERFORMER MEMBERS IN 2O13WHO BENEFITTED FROM PPL’S
‘QUALIFIED INTERMEDIARY’ STATUS(AND SO RECEIVED THEIR MONIES
FROM THE USA WITHOUTA 3O% TAX DEDUCTION)
23,123PERFORMER MEMBERS WHO RECEIVED
ONE INTERNATIONAL ALLOCATION IN THE YEAR TO JUNE 2O13
2O,329PERFORMER MEMBERS WHO RECEIVED
MORE THAN ONE ALLOCATION IN THE YEAR TO JUNE 2O13
46,661 PERFORMERS WHO HAVE
APPOINTED PPL TO COLLECT FOR THEM INTERNATIONALLY
55,785PERFORMERS REGISTERED WITH
PPL VIA OVERSEAS MUSIC LICENSING COMPANIES
ALL THAT WE DO, WE DO BECAUSE IT’S YOURS. YOUR THANKS AND APPRECIATION OF OUR WORK ARE VALUED.
YOURTHANKS
‘You have been a HUGE help in this matter
and laid everything out so easily for me. With so many companies I’ve been on the phone forever
and been transferred all over the place and it isn’t pleasant having
to explain over and over. I can’t express how much I appreciate your help.’
SHELLY BOLDERWIDOW OF TREVOR BOLDER
BASSIST
THE SPIDERS FROM MARS WISHBONE ASH
URIAH HEEP
‘I really appreciate
all the work involved that PPL does on behalf of those musicians (past and present) whose musical performances are now finally ‘rewarded’ –
sometimes after long periods of time when their creative input and musical inspiration have been disregarded! We now have due recognition and
just financial reward – thank you PPL for your
tireless efforts!’ BILL LEGENDDRUMMER
T REX
‘Thank you so much! Previously,
I was not aware of PPL and the services the organization provides to
individual performers. UK musicians are very lucky to have PPL – it would be great if the U.S. had the same royalty system!’
VICTOR LÓPEZLEAD TRUMPET
MIAMI SOUND MACHINE
‘Received another transfer – and I’d like to
thank you again, because without your work on my behalf this wouldn’t have happened.’
BOB RACIOPPOBASSIST
THE SHIRTS(ALSO SOLO ARTIST)
‘Thanks for all your hard work on
my behalf – I could never have achieved such a level of accuracy on my own.’
COLIN CAMPSIESINGER
THE QUICK, GIANT STEPS(SESSION VOCALIST: CULTURE CLUB,
CHINA CRISIS)
12|13
For more information or if you have any questions regarding any of the details in the review please contact our performer services team:
E [email protected] T O2O 7534 1234 F O2O 7534 1383
For further information on the PPL Performer Board and PPL management team please go to: ppluk.com/about-us/who-we-are/management-and-boards
DESIGNTypematictypematic.co.uk
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© PPL 2O13This review is available online at ppluk.com
APMRO3 NOV13
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